Growing a Real Estate Portfolio? OSFI’s New Rules Could Change Your Strategy

Big update for property investors

OSFI (Canada’s banking regulator) has announced potential new rules around rental income and mortgage qualification, starting in early 2026. These changes are aimed at investors who are building multi-property portfolios.

What’s changing

• You can’t reuse the same income (job or rental) to qualify for multiple properties.

• Example: If part of your job income and rental income helped you qualify for your first condo, that same rental income can’t be used again for your second mortgage.

• Lenders will now “adjust” total income so it’s not double-counted across properties.

Why this matters

• It will be harder to qualify for multiple rentals using the same pool of income.

• More properties may be classified as “income-producing,” which could mean tighter approvals or slightly higher investment rates.

• The change also brings consistency across banks, since all lenders will have to use the same standard.

Other OSFI updates

• If you default on one loan product tied to your mortgage (like a HELOC), the entire loan package is considered in default.

• Behind the scenes, bank capital rules are shifting.

• In 2026, OSFI will release new Credit Risk Management guidelines, merging the current B-20 (stress test) rules into one broader policy.

Bottom line

If you’re planning to grow a real estate portfolio, this is important. It’ll be tougher to qualify for multiple properties with the same income, so it’s worth reviewing your financing strategy sooner rather than later.

Lenders may start tightening before 2026, so if you’re up for renewal, looking to borrow more, or using strategies like rental cash damming, this is the time to review your plan and loop in your tax and mortgage pros.

📌 Reference article: Canadian Mortgage Trends

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Emily Miszk Mortgage BrokerBRX MortgageFSRA #13463